Investment Philosophy
For us, cashflow is key. Sustainability, consistency, and growth rates of cash flows are key drivers for a company
We believe that time is the most valuable resource and return on time is an extremely important concept
Finding attractive investment opportunities is rare and hard to come by. Hence, position sizes need to be big enough to compensate for the time & effort taken to find them
Disagreement is good. We make money when we disagree with the market and are proven right
Disruptors can change the business environment. Disruption throws up both risks & opportunities
We don’t believe in mean reversion investing. We need to have a possible catalyst in mind / build a reasonable scenario that could play out within our investment horizon to buy a cheap stock
Quality of management is very important
Different time horizons between management of companies and market participants at times throw up opportunities
For us, cashflow is key. Sustainability, consistency, and growth rates of cash flows are key drivers for a company
We believe that time is the most valuable resource and return on time is an extremely important concept
Finding attractive investment opportunities is rare and hard to come by. Hence, position sizes need to be big enough to compensate for the time & effort taken to find them
Disagreement is good. We make money when we disagree with the market and are proven right
Disruptors can change the business environment. Disruption throws up both risks & opportunities
We don’t believe in mean reversion investing. We need to have a possible catalyst in mind / build a reasonable scenario that could play out within our investment horizon to buy a cheap stock
Quality of management is very important
Different time horizons between management of companies and market participants at times throw up opportunities
How we build our portfolio?
01
We manage a concentrated portfolio of ~20-25 stocks
02
The portfolio consists of bottoms up ideas which are market cap & benchmark agnostic
03
We generally invest with a 3 year+ horizon which not only allows us to go way deeper than most others, but also allows us to operate in a less crowded space
04
Given the concentrated approach, we aim for our top few positions to have idiosyncratic drivers with low correlation
05
Our long-term patient approach gives us the ability to take advantage of volatility rather than view it as a risk factor
01
We manage a concentrated portfolio of ~20-25 stocks
02
The portfolio consists of bottoms up ideas which are market cap & benchmark agnostic
03
We generally invest with a 3 year+ horizon which not only allows us to go way deeper than most others, but also allows us to operate in a less crowded space
04
Given the concentrated approach, we aim for our top few positions to have idiosyncratic drivers with low correlation
05
Given our long-term patient approach, we have the ability to take advantage of volatility rather than view it as a risk factor
06
Given our long-term patient approach, we have the ability to take advantage of volatility rather than view it as a risk factor
